Explainer: Office Space Classifications

This week's edition of Explainer discusses the three different classifications for office space as designated by The Building Owners and Managers Association. The highest classification available—Class A—is currently in hot demand in Downtown Toronto, with a number of office towers under construction and proposed addressing the market demand, including the recently completed east tower of the Bay Adelaide Centre (pictured below), the under-construction EY Tower a block to the west. (More office developments are linked at the bottom of this page.)

The Building Owners and Managers Association — an organization for commercial real estate professionals — grades office buildings according to their competitive ability to attract similar types of tenants. A building's rating depends on a variety of factors including rent, finishes, system standards and efficiency, amenities, location, and market perception.

The grading system is broken down into three distinct categories. The 'Class A' designation is afforded to "prestigious" buildings which compete for "premier" office users. Rent at these properties is usually above the neighbourhood average. They typically feature high-quality finishes, state-of-the-art building systems, and easy accessibility. 'Class B' office space is characterized by average rents and finishes comparable to other buildings in the area. 'Class C' buildings compete for tenants "requiring functional space" at below-average rents. They are typically defined by older technologies and antiquated infrastructure. They may also be located in less desirable areas. A building's grade is relative to other properties in a given market. Therefore, a Class A building in a small town compared to Class A space in Manhattan will not share the same qualities.

EY Tower will be a 900,000 sf LEED Platinum Class AAA building located at 100 Adelaide Street West, between Bay and York Streets. Designed by world renowned architects Kohn Pederson Fox and assisted...

35-storey office tower and 63 and 67-storey residential condominium towers at 1 York and 90 Harbour Street respectively.
The One York mixed-use complex for Menkes Developments, designed and overseen...

The revised application is for a commercial tower on a street-related base, which includes the retention of the façade of the heritage building at 160 Front Street. The proposed development will have...